______________________________ Is a Process, Effected by an Entity's Board of Directors

question 126

Short Answer

______________________________ is a process, effected by an entity's board of directors, management and other personnel, applied in strategy settings and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.

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Definitions:

External Cost

A cost that is not borne by the parties involved in a transaction but rather by third parties or society at large, such as pollution.

Computer Programmers

Professionals who write, test, and maintain the code that allows computer applications and software programs to function properly.

National Defense

The governmental and military activities aimed at defending a country's territorial integrity and protecting its citizens from external threats.

Misallocated

A situation where resources are used inefficiently, resulting in lost potential output or wasteful expenditures.